Group of women attending a meeting. Source: Rural Community Development Programs
Group of women attending a meeting. Source: Rural Community Development Programs

Social Issue

In June 2016, the Pakistani Ministry of Planning, Development and Reform in Pakistan reported that the Multidimensional Poverty Index had dropped from 59% to 39% between 2004 and 2015.

However, poverty is still established in 54.6% of the country’s rural regions.

Our Response

Microloans are a powerful tool to provide opportunities to excluded and marginalised communities.

RCDP was founded in 1998 as a microcredit programme of the government agency Rural Community Development Society (RCDS), which aims to reduce poverty in the Pakistani province of Punjab.

RCDP operates in 22 districts in the north and centre of Punjab province. These districts have an estimated population of 59.5 million, 80% of whom live in rural areas. Most of their services are focused on supporting and developing micro-businesses, but at the same time, they also offer loans for livestock and very specific loans for marginalised groups, such as widows. Most of their loans are granted to groups and the average size of these is $255.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that RCDP will be able to provide 5,000 loans, with the idea of supporting communities in the development of their businesses.